Intel stock extends gains after report of possible U.S. government stake
On Friday, Goldman Sachs shifted its rating for Alnylam Pharmaceuticals (NASDAQ:ALNY) shares from Neutral to Buy, setting a 12-month price target of $370.00. The change comes in anticipation of a fundamental re-rating driven by the company's key asset, Amvuttra, in treating ATTR-cardiomyopathy (CM).
The upgrade follows the positive Phase 3 HELIOS-B topline results, with detailed data expected to be presented at the European Society of Cardiology meeting on August 30. The data, including mortality/outcomes curves, is projected to enhance Amvuttra's profile.
Goldman Sachs expects the stock to rise following the detailed data release at the ESC meeting due to Alnylam's strong fundamentals and positive outlook. The firm's due diligence and discussions with key opinion leaders (KOLs) indicate a robust revenue trajectory for Amvuttra, with Goldman Sachs estimating peak sales of approximately $5.3 billion by 2035, assuming a second quarter 2025 launch for the CM indication.
The enthusiasm surrounding the distinct mechanism of Amvuttra supports its use in various patient segments and in combination with other treatments post-2028 when exclusivity for competing drug tafamidis expires.
The market potential for Amvuttra is seen as significant, with current penetration at around 10%, and the drug's status as a Medicare Part B drug may shield it from reimbursement challenges that could affect competitor Part D drugs. This is due to the redesign of payer liability, which could pose headwinds for other treatments.
Looking beyond the current valuation, Goldman Sachs sees additional upside from Alnylam's lifecycle management strategy. This includes the development of the next-generation ALN-TTRsc04, which could improve the company's margin profile.
Further information on the Phase 3 design of this asset is expected by the end of the year, with a TTR Investor Day scheduled for October 9. The firm also notes Alnylam's efforts in addressing obesity and central nervous system disorders, with a trajectory towards non-GAAP profitability by the fourth quarter of 2025, according to Goldman Sachs' financial models.
In other recent news, Alnylam Pharmaceuticals has been a subject of interest with its robust financial performance and promising clinical developments. The company's second-quarter earnings report exceeded expectations in both revenue and profit, largely due to the growth of its TTR franchise, and a milestone payment from a licensing agreement with Regeneron (NASDAQ:REGN). Alnylam reported a 34% year-over-year increase in global net product revenues, primarily driven by a 37% increase in the TTR franchise.
The company has updated its 2024 revenue guidance, now expecting product revenues to reach between $1.575 billion and $1.65 billion, up from the previous forecast of $1.4 billion to $1.5 billion. These developments have led to positive reactions from analysts at BMO Capital Markets, Canaccord Genuity, and RBC Capital Markets, who have maintained their bullish outlooks on Alnylam and adjusted their price targets accordingly.
In addition to its financial performance, Alnylam reported positive top-line results from the HELIOS-B Phase 3 study of vutrisiran in ATTR cardiomyopathy, demonstrating improved cardiovascular outcomes and a mortality benefit compared to placebo. The company's focus on RNA interference (RNAi) therapeutics, with drugs like Amvuttra, has positioned it as a pioneer in this innovative area of medicine.
Finally, Alnylam is also preparing for potential product launches next year and has plans to file three investigational new drug applications by the end of the year. These recent developments continue to paint a promising picture for Alnylam's ongoing initiatives and future growth.
InvestingPro Insights
Alnylam Pharmaceuticals (NASDAQ:ALNY) presents a compelling case for investors, with recent shifts in analyst expectations and market performance. According to InvestingPro data, Alnylam boasts a remarkable gross profit margin of 87.0% for the last twelve months as of Q2 2024, underlining the company's ability to maintain profitability at the gross level. This financial health is further supported by the company's impressive revenue growth of 89.46% during the same period, indicating a strong upward trajectory in sales.
InvestingPro Tips highlight that despite not being profitable over the last twelve months, Alnylam's liquid assets surpass its short-term obligations, suggesting a stable financial position for managing its debts and funding operations.
Furthermore, the company has been trading near its 52-week high, with a price 95.55% of this peak, reflecting a positive market sentiment. Investors should note that while Alnylam does not pay dividends, its strong return over the last three months, with a total price return of 73.72%, demonstrates significant market performance.
For those interested in a deeper analysis, InvestingPro offers additional insights, with over ten more InvestingPro Tips available for Alnylam Pharmaceuticals, which can be found at https://www.investing.com/pro/ALNY. These tips provide a more nuanced understanding of the company's financials and market potential.
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